Global macro overview for 20/01/2017:
One of the most influential rating agency, Standard & Poor's, just affirmed New Zealand AA foreign currency rating. The S&P justified the decision, saying New Zealand outlook reflects expectations that New Zealand will maintain or improve fiscal performance over a medium term. Moreover, New Zealand has monetary and fiscal flexibility, a resilient economy and institutions sensitive to swift and decisive policy measures, though its high external debt offsets these strengths. In conclusion, good news from S&P about New Zealand might soon find its reflection in financial markets.
Let's now take a look at the NZD/USD technical picture in the daily time frame. The bulls have managed to push the price just below the technical resistance at the level of 0.7241, but now it looks like the bear camp is trying to get the control back over this market. Any breakout below the technical support at the level of 0.7149 will confirm the strength of the bearish pressure and a daily candle close below it might increase the decline towards the level of 0.7044 in the near future.
